Dow Agrosciences Collaborative Agreement (2007) Smartstax

MONSANTO – DOW AGROSCIENCES COLLABORATIVE AGREEMENT:

SmartStax : NEW INDUSTRY-STANDARD STACKED-TRAIT PLATFORM

Sept. 14, 2007

1 Forward-Looking Statements

Certain statements contained in this presentation are "forward-looking statements," such as statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the company's research and development activities; the outcomes of major lawsuits, including proceedings related to Solutia Inc.; developments related to foreign currencies and economies; successful completion and operation of recent acquisitions; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company's facilities; and other risks and factors detailed in the company's most recent periodic report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this presentation. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.

Trademarks Trademarks owned by Monsanto Company and its wholly-owned subsidiaries are italicized in this presentation. Herculex is a trademark of Dow AgroSciences LLC. All other trademarks are the property of their respective owners.

© 2007 Monsanto Company

2 OVERVIEW Agreement Redefines Competitive Landscape; Opportunity to Pursue Step-Change in Performance for Farmers

This collaborative agreement redefines the seeds-and-traits opportunity in corn by: X Bringing together the technologies of the two companies that have developed and commercialized the biotech traits widely in use today X Working together to create new value for farmers otherwise impossible for either company to achieve independently X Leapfrogging potential generic trait offerings to create the first eight-gene stack that defines the standard of performance, branded as SmartStax

Value created by the SmartStax should: X Provide farmers in the U.S. and globally with access to the industry’s best-performing package of traits offered on the backbone of the highest-yielding germplasm so farmers don’t have to make trade-offs on performance and protection Y Accelerate each company’s ability to penetrate its available trait acreage targets

Z Allow each company the opportunity to increase sales of its owned brands

3 PRODUCT CONCEPT First-Ever Eight-Gene Stack Leapfrogs Competitive Products, Boosting Performance, Creating New Value for Farmers

SmartStax is in proof-of- SmartStax concept testing, establishing: Anatomy of first-ever eight-way gene platform X Feasibility of full trait integration TRAIT GENES FUNCTION STATUS X Viability of enhanced X YieldGard VT Triple PRO Pending Regulatory Review performance for insect and weed control COMPONENTS T

YieldGard VT Rootworm/RR2 1 Below-Ground Insect Control Commercial 2ND-GENERATION ROOTWORM CONTROL PRIMARY: ROOTWORM

Roundup Ready 2 Technology VIA YIELDGARD VT ROOTWORM/RR2 1 Weed Control Commercial MODE: GLYPHOSATE

YieldGard VT PRO ND 2 -GENERATION YIELDGARD CORN 2 Above-Ground Insect Control PHASE IV BORER PRIMARY: CORN BORER Pending Regulatory Review

Y Herculex XTRA SMARTSTAX CORN PLANTED COMPONENTS T S IN WESTERN IOWA, SHOWING FULL, HEALTHY EARS AND Above-Ground Insect T STRONG, HEALTHY ROOTS Herculex I 1 Control Commercial PRIMARY: CORN BORER

Below-Ground Insect Herculex RW 2 Control Commercial PRIMARY: ROOTWORM

Liberty Link 1 Weed Control Commercial MODE: GLUFOSINATE

Multiple modes of • Application for EPA SmartStax registration to be submitted action for above- and Industry-Standard Trait below-ground insect • On track for end-of-decade 1 commercialization in U.S., Platform _ and weed control with global roll-out following

1. This product has not been registered by the U.S. Environmental Protection Agency. It is a violation of federal law to promote or sell an unregistered pesticide. 4 PRODUCT CONCEPT SmartStax Creates Platform that Revolutionizes Traits Game With Superior Performance in One Package

SmartStax New value and opportunity for farmers: Anatomy of first-ever eight-way gene stack Durability. Combining multiple genes in a ABOVE-GROUND INSECT PROTECTION T single package helps ensure sustainable insect protection and weed control year after year: • Combined modes of action for insect protection guard against the development of insect resistance Combined herbicide tolerant traits that T • BELOW-GROUND INSECT PROTECTION offer multiple modes of action for weed control Performance. The complementary nature of the trait platforms converge to offer superior, season-long performance to farmers, notably: • Enhanced control of a broader spectrum WEED CONTROL SYSTEM T of above- and below-ground insects • Most comprehensive protection against established and emerging secondary pests • The industry’s best weed control system

5 PRODUCT CONCEPT SmartStax Can Raise the Yield Potential and Grain Quality of the Whole Farm

New value and opportunity for farmers: REFUGE ACRES SmartStax Dual Effective Dose Provides Enhanced Durability

Combination of multiple modes of action for insect control in the SmartStax creates the potential to reduce refuge acres • Multiple modes of action for insect control reduce likelihood of resistance developing in insects • U.S. EPA granted refuge reduction based on dual effective dose in Bollgard II cotton

For insect resistance management (IRM), the U.S. Farmers report significant grain quality and EPA requires a set-aside refuge for all current improved yield opportunity in acres protected by single-mode-of-action insect-protected traits in traits versus those in a set-aside refuge corn. Configurations can vary, but when planting an • Side-by-side comparisons in Illinois indicate insect-protected trait, farmers in the Corn Belt are farmers experience an average 20 bu/acre required to plant a dedicated 20% of acres to corn yield difference between the performance of without that particular insect-protected trait. YieldGard VT Triple and on-farm refuge acres Set aside refuge helps create a population of “susceptible” insects that can breed with any insects that may develop resistance to the traits, thus helping maintain the durability and usefulness of the traits.

6 PRODUCT CONCEPT SmartStax Represents Broadest Control of Primary and Secondary Pests Available to Farmers

RELATIVE INSECT ACTIVITY OF BT PRODUCTS

SmartStax

PRIMARY PESTS

European Corn Borer (Ostrinia nubilalis) Southwestern Corn Borer (Diatraea graandiosella)

Northern Corn Rootworm (Diabrotica barberi) Western Corn Rootworm (Diabrotica virgifera virgifera)

SECONDARY PESTS

Western bean cutworm (Richia albicosta)

Black Cutworm (Agrotis ipsilion) Fall Armyworm (Spodoptera frugiperda) Corn Earworm (Helicoverpa zea)

Very Good to Excellent Control 7 PRODUCT OPPORTUNITY Market Research Confirms in Performance-Driven Market, SmartStax Creates Value Recognized by Farmers

LIKELIHOOD OF PLANTING SmartStax TECHNOLOGY MARKET RESEARCH1 Assuming it was available at a reasonable or acceptable price and in the right hybrids for your farm, how likely are you to plant this next generation of insect protection technology? T KEY CONCLUSIONS “Definitely will” or “Probably will” • Farmers recognize premium YIELDGARD CORN value for performance of BORER USERS WHO TREAT FOR 85% SmartStax ROOTWORM

• Farmers are likely to switch 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% brands to get the premium PERCENT OF FARMERS

value of SmartStax HERCULEX I CORN BORER USERS WHO • Farmers are likely to increase TREAT FOR 81% ROOTWORM base treated acres because of SmartStax 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% BUSINESS OPPORTUNITIEST LIKELIHOOD OF SWITCHING BRANDS FOR SmartStax Monsanto and Dow seed brands have the opportunity If your current seed brand did not offer this new Monsanto Insect Protection Technology, how likely would you be to switch seed brands to obtain this new technology? Would you say: X to use SmartStax to “Very likely” or “Somewhat likely” compete for share gains YIELDGARD CORN SmartStax should help BORER USERS WHO TREAT FOR 74% Y drive penetration faster and ROOTWORM gain a larger share of acres 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% where the technology is a fit PERCENT OF FARMERS

HERCULEX I CORN 1. Based on a sample of 245 corn growers BORER USERS WHO TREAT FOR 65% ROOTWORM

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

8 COLLABORATION DETAILS Ground-Breaking Deal Creates New Opportunities for Both Monsanto and Dow AgroSciences Globally

AGREEMENT OVERVIEW Cross licensing agreement enables development of first-ever eight-way gene stack – the SmartStax – that provides multiple sources of insect control and herbicide tolerance to improve performance for farmers

DOW AGROSCIENCES MONSANTO • Herculex I • YieldGard VT Triple PRO TECHNOLOGY • Herculex RW 2ND GEN ROOTWORM CONTROL CONTRIBUTIONS 2ND GEN YIELDGARD CORN BORER • Liberty Link ROUNDUP READY 2 TECHNOLOGY • Monsanto has ability to sell SmartStax • Dow has ability to sell in any Monsanto-owned brands, SmartStax in any Dow-owned including DEKALB and ASI brands brand • Monsanto is the representative for joint third-party licensing through Holden’s/Corn States MARKET APPROACH • Global deal, spanning all geographies where respective traits are registered • Dow and Monsanto agree to a 10-year germplasm cross license, offering inbreds for use by the other party to create new hybrid combinations to be sold in the respective brands • Dow and Monsanto will compete in the marketplace to sell respective hybrids containing SmartStax traits • Dow and Monsanto may independently stack additional traits with SmartStax in their own brands

* Dow AgroSciences includes Dow AgroSciences and relevant affiliates, including Mycogen Plant Sciences, Inc., as appropriate 9